Confusing a Bubble for a Genuine Recovery-Peter Schiff

Money manager Peter Schiff says don’t be fooled by the strong dollar or the so-called recovery. Schiff explains, “The biggest disconnect right now is between the real state of the U.S. economy and the fantasy land a lot of investors believe exists. Everybody is of the opinion that the Federal Reserve’s monetary policy worked. Because they did QE 1, 2 and 3 and kept interest rates at zero, the Federal Reserve saved the U.S. economy and they solved all the problems. Because the problems have been solved, we no longer need the Fed . . . and everything is fine. That is complete fantasy. There is a bigger disconnect now than there was just before the 2008 financial crisis. The truth of the matter is the Federal Reserve didn’t solve any of our problems. They made them all worse. We are more dependent on QE than ever before. So, rather than raising interest rates next year like everybody expects, I think they are going to launch QE 4, which nobody expects. There is no end to this. The Fed has to do this indefinitely because the minute they stop propping up this artificial phony economy, it will implode. Everyone is confusing a bubble for a genuine recovery. It’s not.”

How long can the economy be propped up and why hasn’t it fallen? Schiff says, “This stuff goes on longer than you expect. People were asking the same questions about the housing bubble, which I was warning about for years. They would say ‘well, nothing bad has happened, so what makes you think it’s going to?’ It’s just inevitable. The fact that we’ve been able to postpone the day of reckoning for so long just makes the problems worse, which means the day of reckoning is worse. The further back into the future we deal with the consequences, the bigger the problems are, the bigger the consequences. Right now, part of the reason we are able to continue this charade is all of the other countries, particularly Europe and Japan, are in so much trouble that people assume we are the safe haven. They think we are the only economy that is recovering. We’re not, it’s like a mirage in the desert, and the closer you get to it, you eventually find out it’s an illusion.”

Schiff goes on to say, “I think we are going back into recession, and what is the Fed going to do to avoid that recession? More QE, and maybe that’s going to be the wakeup call. The only reason we’ve been able to get away with it is because people believe it’s temporary. They believe it’s going to work. They believe the Fed has an exit strategy. When they realize it didn’t work and it failed, and because it failed, it’s never going to end. It will be repeated indefinitely. It’s QE infinity, which is what I said from day one. Once we went down that road, we would never stop. I said if we had an economy that lived by QE that it would die by QE. That’s exactly what’s going to happen.”

On gold, Schiff says, “This is the best negative sentiment you can ask for forming a bottom. The fundamentals have never been this good for gold. Normally, you have a situation where you have central bankers that have positive real interest rates, and they are promising no inflation and price stability. Now, you have all the major central banks at or near zero percent interest rates promising inflation. They are saying price stability is now a dangerous thing because it’s too close to deflation. I have never seen a situation where you have so much money that has been printed and central bankers promising to print more money. Yet, people aren’t smart enough to be buying gold.

About the Author

Greg Hunter

Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.

Comments

Jeff L11/17/2014 •

I highly respect Schiff because he’s one of the few that will stand up to the MSM. Specifically, CNBS….. Regarding the economy, we’re already in recession, we never technically left it….. Regarding gold, follow the smart money. The smart money being the central banks buying gold (east) vs the central banks printing paper (west)……. Except for those waiting for $900 gold is it really not a no brainer ?

Thanks Greg
Peter seems to come from the school that believes that there was this good system (for profit) that has been abused by corrupt people and this great system if tweaked in the right way can mean prosperity for all good working people. To me it seems that for profit whether communist, socialist, capitalist or any other ist ends with a few holding most of the money (in whatever form), technology and resources. Not really sure which of these systems is the chicken or which is the egg but they all seem to land in the same place. Collapse. Only now the giants are gobbling up the small worldwide at am
n alarming rate. I’m not worrying about the FED or the central banks because they will be swallowed by the IMF and World Bank. Countries are being turned into Unions and the whole world is bankrupt. Remove money in all forms and replace it with a desire to do right by all our brothers and sisters and our home. Now how many problems exist? Am I speaking of utopia? Not sure if this exist or can exist but the desire to do good for others and ourselves can and it wouldn’t cost a cent. How many things are we deprived of because of this stupid system. Hell we can’t even fight Ebola without cash. So when the crash comes, do we just beg the ones who crashed it to save us as we did in the 30’s and 40’s or do we talk and act like God’s kids who have all the rights and privileges the crashers have. They will only let it crash if they are reasonably sure we will look to them for our answer. Their greatest tool is money. With this they have bought the Media, Militaries, technology and resources. Just think of how many good things cannot happen in our world because of this belief that money is needed to do everything. All good needs to be accomplished is resources, technology, knowledge and people. These four we already have. Spreading this message rather than using their terms and system any longer may be the difference that determines the quality of the future of mankind.

You speak of the big picture which I see from a slightly different, but similar and less organic, perspective. Rather than resources, technology, knowledge and caring people being the necessary elements for ensuring the best quality of life, I consider the highest quality of life attainable by mankind to be supported by the two columns reflected succinctly in the 10 commandments. The first column is a love for God (defined by the first four commandments) while the second column is the love for mankind (the last six). Beyond these, nothing else is needed and absent either one we are completely lost.

So how would this fit into the big picture of today as related to what we see happening in the world? Might mankind be designed to be tested and strengthened by the stress he endures both physically as well as spiritually? If this is true, one could reasonably conclude that, by God’s will, there are powerful human beings on earth who would shake these two columns by asserting a claim to dominion over us, even to the point of attempting to force us to do things which God has forbidden. The use of monopoly money distributed at interest is just one of the potent tools they use to enslave us.

As individual creations who retain free will, we must use it and choose whether and to what degree we will revere and obey the Creator or the created things. And this battle rages on toward the coming judgement day with hell on earth becoming daily more visible for all of those with eyes to see. In this mystery of life we would be prudent to hear and heed the declaration…”To everything, there is a purpose under heaven”, and this obviously includes the revealing of those few divine commandments.

Hi Greg
Top interview with a top man!
I always enjoy Peter’s interviews. He is a straight shooter and doesn’t waste any of our time with fairy stories.
I notice he puts big store on the outcome of the Swiss referendum.
IMHO the outcome of this vote could be very revealing
I also totally agree with Peter – re how could the Fed possibly taper to any meaningful degree. How can anyone taper a Ponzi scheme – its that simple! I am a farmer and even I can grasp this basic fundamental.

Next time you have him on I would love you to ask him his opinion on the farcical ownership model of my favourite subject – da FED.

I would also like to add that I consider Obama’s moronic comments at the Brisbane G20, regarding Putin and the Ukraine situation, to be totally irresponsible and reckless even by his own woeful standards. This delusional, bumbling, pathological liar is an extremely serious threat to the well being of the entire world.

The economy hasn’t collapsed, the dollar is strong and the stock market continues to head higher … everyone cowers in fear of the banker “Wizards” on Wall Street.

But your guest Peter Schiff and many others you have had on USAWatchDog like Jim Sinclair, Gregory Mannarino, James Turk, etc., etc. have provided us with the truth just like that little dog Toto in the movie “The Wizard of Oz” who pulled back the curtain on the Wizard and exposed him for what he was “a Con Man”.

The bankers are all professional con men … they can pull some levers … and make the US dollar and stock market look strong, and gold and silver look weak, etc. … but fear not … your guests are economically savvy and they are telling us that if we want to get our lives back from the financial tornado the bankers have created for us we simply must listen to their advice the way Dorothy did … and “follow the yellow (gold) brick road”.

How can you fault someone who gives such sound advice to pack it up and move to Puerto Rico, the unofficial 51st US state under US control which has the US dollar as its currency and which is currently a supposed tax haven?

Does he have a crystal ball or guarantee the US will not make changes to how it taxes people who move to Puerto Rico or anywhere else in the world for that matter? The most onerous, over reaching and oppressive country in the world when it comes to taxes is the US and it will only get worse as things deteriorate further.

What also has to be considered is Puerto Rico is a poor country with a poverty rate of over 41% and is highly dependent on the US for financial aid.

In fact, it currently receives about $6.5 billion a year in assistance which would likely end if the US economy was to collapse, and who doesn’t see that event coming?

But fear not, the Puerto Ricans are heavily armed and actually have the highest percentage of homicides by firearms in the world at 94.8%. While the US has 2.97 homicides per 100,000 by firearm, Puerto Rica has 18.3. They won’t be needing pitchforks when the SHTF and they go after those who have all the money and wealth.

I’ve lived in a number of countries and have lived overseas for over 15 years now. Puerto Rico would not make my list of countries to live. It’s nothing more than an extension of the US and I would not consider it either a viable tax haven or safe haven for that matter.

PS I looked at the video Schiff referenced. It is nothing more than a blatant advertisement to sell an outrageously overpriced $695 video course on relocating to Puerto Rico. You want to lose credibility with me, this is how you do it.

Mike, it seems to me that some economists focus on their particular field of expertise and tend to overlook how the economic situation dictates much of politics, and by extension, the military and social structure of the world. I regard Peter as one of the best and was pleased to see him up on USA WD, but as likely as he is to survive an economic meltdown, when the social and political reality hits, he could be caught out for sure. Next up is Gerald Celente and this guy really knows how it all ties together and delivers with humour and passion (as I’m sure you’re well aware). Sweet!

“They won’t be needing pitchforks when the SHTF and they go after those who have all the money and wealth.”

You think Puerto Rico is bad? (I’ve been there numerous times in the military and loved the country, and the people). During 20 years on active duty I too lived overseas for a number of years, my favorite, Republic of South Korea.

That being said let me take you for a ride….I’ll dump you out in broad daylight on the east side of Detroit, or how about the south side of Chicago…..East St Louis…..Flint, Mi, Camden NJ, East LA maybe? I could name 100 others. THEN you’ll have have an idea of what the real crime in the US is about. And by the way, I can guarantee you won’t come out unscathed…. you’ll probably have a few holes blown in you for the 5 bucks in your pocket. Just wait until the SHTF to watch those crowds spread out and forage for food. One thing you forget in your SHTF scenario: when the S really HTF the fact we are already in a severe recession will be obvious. The average AmeriKan seems to forget that in the 20’s and 30’s there was no social security, no section 8 housing, no medicaid and most important no EBT for food.

The dollar is strong???? The dollar index hit its high of 164.7200 in February 1985. Your “strong dollar” has been hovering between 70-90 for the last 10 years. When it gets back around 120 you might be able to make that claim. For now it’s fantasy.

“In fact, it currently receives about $6.5 billion a year in assistance which would likely end if the US economy was to collapse, and who doesn’t see that event coming”
Do you have a clue as to how many billions are sent by DC to states and cities?
States receiving the most federal funding per tax dollar paid:
1. New Mexico: $2.63
2. West Virginia: $2.57
3. Mississippi: $2.47
4. District of Colombia: $2.41
5. Hawaii: $2.38
That’s just the top 5.

Puerto Rico wouldn’t be my number one overseas haven, but I could name 50 others that would be below it. If Schiff is living there and wants to promote it good for him. You left this country….good for you. When the SHTF this is the country I want to be here.
Maybe I’m just lucky but I’m rural (I moved from the cesspools when I retired from the military), and I am prepared for anything short of a nuke and if that happens remember….you’ve got to be within a couple of hundred miles and downwind.
It’s better to be prepared for financial or natural disaster 10 years too early rather than have to look you family in the eyes when you realize you are 10 minutes too late.
The beginning of the depression will not be televised.

God forbid Greg might be able to make a living by providing valuable information to those of us who believe in his sincerity and understand that although he interviews each guest he does not necessarily endorse their beliefs.
BTW as a US citizen living overseas do you take advantage of the Federal welfare program and fill out form 2555 and exclude up to $100,800 per year from your taxable income through the foreign earned income exclusion?
Enjoy your week.

As foolish as western financial institutions and politicians appear to be, I can’t help but think that at the very top, there are people who know exactly what they’re doing. The insanity of the European nation’s, that rely heavily on Russian gas and trade, following US policy with sanctions that put further pressure on a struggling Eurozone is but one example of a situation that is ‘too stupid to be stupid’.

So, I have to come to the conclusion that there are groups plotting the next great upheaval that will grant them even more wealth and influence. All across the western world people are feeling increasingly threatened by mass immigration and austerity measures. Does anyone else think a nationalist uprising throughout the US and Europe will be used to disguise the current financial crises and appease the citizens, while primarily being orchestrated to destroy the growing competition of these groups?

The handwringing is on the wall . . . ,of worry, for all the world to see. The Obola administration and the Saudi’s, Qutarie’s and John McCains baby, has to be thrown out with the bath water, or we will be embroiled in a religious war the likes of this world has not seen in 600 years!

I don’t know if Peter will see this, but the video about Puerto Rico is awfully slow to load and impossible to watch because it loads for 10 seconds to play for 4 seconds. Make an option available to download the full video.

Peter has been correct for years. In his book “Crashproof 2.0” from 2010 he talked about nations getting to the endpoint and having to monetize, or buy, all the debt they create themselves.
Japan just admitted it, we of course we lie about it but the US must be close.
The entire system needs to come down.

Hey, Greg the chicken gets the “straight scoop” from the Fox in charge of the hen house, a capitalist money and gold manager, who, out of the kindness of his heart (yeah right!) gives us the inside scoop on what the Fed (the ones who make all this crony capitalism possible) is “doing wrong” (while they make millions from US).
Talk about fantasy world…
Didn’t your “friends” Greg, say the same things last year, and the year before and the year…. before?
Greg, are you the only one who thinks all of this corruption in the government is NEW? Do you really think that things were run honestly back in the day (WHENEVER that was for you)?
You claim to be the “spin free” news “watchdog” but you only bring on professionals FROM INSIDE the system who are RICH FROM THE SYSTEM to give us the “inside scoop”. You sir are either an idiot and fool or the most naive person in the world – or you are a bald faced spin doctor YOURSELF. I vote #3; spin doctor.
You still haven’t yet made a full disclosure on you are paid. I don’t mean the pennies you collect in donations from viewers/worshipers, but from your GUESTS who are always pitching their “Puerto Rico Plan” on YOUR SHOW. C’mon Greg Hunter, commercials aren’t free, and we know it. You have just figured out a way to pretend you’re a good-guy just informing us all, but you’re really part of the spin, milking it on the Q-T.
You just another angle to be measured, another phony, another schill.

What’s really amazing is not that a few bankers and many public office holders are doing everything they can to enrich themselves at the expense of the public, but that the sheep-like public are so gullible and trusting that they do nothing to stop them.

Excellent interview. Thank you. Peter Schiff is a rock. He consistently speaks the truth and has no fear of being the lone voice in the wilderness. I bet the worse fear of the MSM government shills is having to debate Schiff. He makes them look like the fools they are.

Greg, I don’t know if you noticed it or not, but almost all of my post the last couple of months have been about RMB hubs being set up around the world? Australia will be the next to come on board after the G20 meeting.

My question is, if the dollar is doing so great, and the economy has recovered, then why is there this rush to embrace the RMB? Better yet, why the manipulation of the precious metals market, if the dollar is strong?

I think Peter Schiff gave us the clue. They don’t have any other choice but to manipulate, (print money with QE4) and rig the markets , because the system is broken and will never be able to recover.

Greg can you name the last time the United States signed a trade agreement of any kind with another country ? I sure can’t unless you want to include NAFTA which was nothing more than a hose job for the American workers.

Greg. I enjoy all of your reports. As I see it there are over 7 billion people on the planet. Most don’t keep up with economic movement, they just work and play. Maybe 10 % keep up with what is happening around them. So perception is and will be all is fine. Now the world is controlled by Oligarchy rule letting corruption run free. Things will not change until morality is demanded by the end of a rod.

Peter Schiff is right on target. Anyone that has gone to the grocery store recently can tell you that prices are rising and the economy is in bad shape. Job reporting is pure fiction along with other government stats. The MSM of course point to falling oil prices as proof of an improving eceonomy. While the economy does benefit from lower oil prices, one shouldn’t be confused by declinng oil prices; it is only temporary and has more to do with Saudi Arabia punishing Russia than a booming eceonomy. Back in the ’90s the House of Saud quadrupled their oil production capacity so they could take down any rogue nation that threatened their profits. The major oil companies have not shelved any billion dollar projects in the Gulf of Mexico because they know that long-term oil prices will move north of $100 per barrel and higher again. Unfortunately, the “mom and pop” oil and gas companies cannot withstand price shocks and are folding up their onshore shale oil and gas fields. Better to buy a Prius than an SUV! Thanks Peter and Greg!

Tax free zone Greg. Boy, wouldn’t we all like to get a little relief. What a great guest and a positive way to start the week . I just think the world of Peter and you too my friend. He seems to really be on top of the monetary situation and I was thinking myself of planting a garden down in one of the tropical countries where some of my other friends are. I am checking it out seriously, year round veggies, tropical fruit and plenty of sunshine. That is of course may depend if my Social Insecurity check can make it . Bah humbug just kidding. Your are simply the best. Thanks for the great info
Sambo

Great stuff Greg. Another terrific interview. IMHO we are getting closer
to the day when TSHTF and markets revert back to normal which means
paper assets (dollar) down and hard assets (precious metals) up.

Greg, Nice to hear Peter Schiff. He is always good for blowing holes through the propaganda but falls slightly short by chalking it up to bumbling incompetence and referring to real fundamentals and sentiments. Don’t we pretty much know it’s all manipulation and lies at this point? It is time for you to get Jim Willie on again.
In this interview he sheds light on the suppressed gold prices as a means to paying off debts and relieving debtors of worthless T-Bills, etc…http://www.youtube.com/watch?v=pnGkdJVa-Yghttp://www.youtube.com/watch?v=bw48qEZY0A0

Great interview Greg. Peter is one of the best “no-nonsense”, tell-it-like-it-is commentators on the current fantasy world of global economics. He is definitely right. The FED is in a box: it will be QE to infinity and ZIRP forever. Otherwise, the markets will crash and the US would have to default even if interest rates were historically nominal at 4% since our present debt would be unserviceable. My only caveat to his comments is that he does not explain here (although he has on other venues) that we have been in a continuing recession. All the Govt GDP numbers are false because inflation is grossly understated. If you go by Shadowstats analyzed numbers, GDP has been negative for the past 6 years.

Here in America the situation is so dire that the Federal Reserve is now having the big Wall St. banks continue their quantitative easing program through a backdoor mechanism. For years the Federal Reserve required these banks to carry excess reserves, cash that they could not lend out. Why? Well Just prior to the Federal Reserve announcing an “end” to it’s QE program, the Federal Reserve announced it was requiring these banks to buy debt, aka “liquid assets.” This is simply QE via “other means.”

Greg, I enjoy your show and appreciate all of the effort you put in. While Schiff is one of my least favorite guests, he’s still a lot better than the blatant propaganda you get on the major networks. He either doesn’t understand or will not admit that the price of precious metals is being suppressed through naked short selling in the paper futures markets. Obvioulsy, if the demand for precious metals worldwide is going up every year, but the price is falling, then it is being manipulated. His comment about people not being smart enough to buy gold may be true for the average dumb American, but worldwide demand is skyrocketing. Libertarians refuse to ackgnowledge any coprorate crimes, whether it’s gold and silver price suppression, rigging stocks with high frequency trading, Libor rigging, money laundering for drug cartels and terrorists, or anything else. Meanwhile, Wall Street criminals are destroying the value of my precious metals investments.

Greg, what Peter Schiff is saying, Ludwig von Mises put very succinctly many years ago;

“True, governments can reduce the rate of interest in the short run. They can issue additional paper money. They can open the way to credit expansion by the banks. They can thus create an artificial boom and the appearance of prosperity. But such a boom is bound to collapse soon or late and to bring about a depression.
There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”

Jerry and Greg. A inch is far from a mile, Yet there would be no such thing as a mile without that small inch. Many na Sayers looking only at what they see in the moment can not envision the mile ahead. Thus the cliff catches them by surprise. A good man will leave a inheritance to his great grandchildren.

I’m really wondering how long can most everyone interviewed here be wrong until they start being right. Talk about cans being kicked down the road… It seems everyone except Martin Armstrong has believed the system would have imploded by now.
– It doesn’t look like the promised hyperinflation will start by the end of the year.
– It doesn’t look like gold is going to $10,000 in November (though I’m really, really hoping it does)
There’s been a lot of gold bug hype about the coming Swiss Gold Referendum. On this I’m wondering if this will be a buy the rumor sell the news on a YES vote. And, what happens after all the buildup that the referendum is soundly defeated?

The following quote attributed to John Maynard Keynes continues to haunt me: “The Market Can Remain Irrational Longer Than You Can Remain Solvent”

If we had people like Mr. Peter Schiff running the economy of America, can you imagine how well this country would be doing! Thanks Greg, for bringing in these very intelligent folks to communicate about complicated political and market analysis. so the average John & Jane Does, can understand what’s going on in the world. Appreciate you commentary. Thanks again SP

So happy to see one of my favorite speakers on your show today – Peter Schiff! He always explains things in way that everyone should be able to understand. I am glad to see that he is staying away from making date predictions on a currency collapse or the price of gold, but I thought it was great how he explained how the fundamentals for gold are the best he has ever seen, and I agree. It may be 6 months or 1 year or even 2 years, but in the not-to-distant future we will look back and say gold and silver were a fire-sale and anyone who didn’t buy now, missed a huge opportunity. Thank you Greg and Peter Schiff for another great video!

I guess the report I received back in April from my source about this incident was true.http://www.voltairenet.org/article185860.html
Maybe this is why Langley and the Black Opt boys are using covert warfare in Iraq, Syria and Ukraine. They’re afraid to take on the Russians and their new pulse weaponry on an open battlefield. Americans are clueless. As Greg has stated “somebody state our objective” in any of these places. If there is a plan in place what is it?

Can’t have a recession, house of cards will fall. I have never been able to figure out how Debt that cannot be paid back shields gloom. Take a look at futures tonight. Gold and silver are not moving up much. Majority of people have no idea what a trillion dollars looks like.

Straight forward rational Peter Schiff. He can stand as one man against the status qou tide of sentiment and it still does not sway his view nor his message to be prepared for the collapse of the dollar.

The reason some people say things like “he has been predicting this for a long time” and things are not to bad so why listen to him is the collapse is done in steps. The dollar for instance is collapsing in steps. IE QE and every other massive printing scheme just adds layer after layer to the collapse.

Mr. Schiff is known to point out that these layers do not actually improve the economy or the dollar’s strength. The propping up only prolongs the collapse and adds to the enormity of that slide to worthlessness. Its too late to avoid the train wreck. It is now time to gather what nuts we can and hunker down.

I listened to you on coast to coast, you were exceptional at your best. I would like to hear you do an hour or two on your site just really saying it like it is on a wide variety of subjects, just like on c to c, about once a month or better yet every two weeks. Hey Greg you hit the nail on the head, thanks so much

I always enjoy Peter Schiff. I do believe he understands the “system”. We are swamped with information. It would be nice if you selected 6 stats that give a good idea where the economy is headed, and update them weekly. Like baseball stats. Something we can be sure is not modified by the government. A reality check. Another good interview. Thanks.

Peter Schiff is not correct the GDP figures for the next quarter will be maintained or even rise.
Most savvy investors realise that the GDP figures have been massaged in the past and will continue to be so to instill a good feel factor with the general public.
It is my belief that the ending of this round of QE was to coincide with the Christmas season and allow Japan to be the fall guy.
Consider that 30% of retail business as measured for the total sales for the year in consumption is normally achieved during the Christmas season and therefore quarter 4 will reflect this. The real test will come in the early part of 2015.
“Beware the ‘Ides of March”.
America is an 80% consumer society (mostly imports from China). Real GDP is borne of a manufacturing based economy.
Take for example Great Britain during the industrial revolution and how great it became, you can now drop the Great as it has become a stock market algorithm driven economy. The same applies to America. The only ones to have benefited from this crazy money printing are the top 1% elites as it certainly isn’t benefiting the genuine working class.
The genuine working class are the real power house behind any economy.
(Simple maths – Gold extraction to break even = $1200 an ounce.
In China Gold extraction to break even = $3000 an ounce
For the Federal Reserve to print $1200 costs about 10 cents).
The World needs to wake up to this reality- China has been at the forefront of this corporeality for thousands of years and has now bled the Planet dry to her advantage.
How China deals with that advantage in the future remains to be seen?
Peter Schiff is correct on the point of buying gold.
Buy gold before China (BRICS) explodes it to $2500 ounce and upwards from there.
Regards
Mike Harvey
Resident in Ireland

Peter has said numerous times, “you can’t penalize savers.” I think there is a lot to ponder in that statement. Like most things; anything but a conservative approach to money is an experiment. Now conservative people who save are manipulated into scenarios designed to make life more difficult . Cannot end well.

I always enjoy hearing from Peter Schiff. It is interesting that he has relocated his business to Puerto Rico. One must wonder how safe it is really, when the shoe falls.
Thank you Greg for your wonderful work and this site.
God’s blessings

The only part of this interview I found was new information (and therefore interesting to me) was when (despite all of Greg’s questions asking for some sort of prediction as to what we should expect) Schiff talked about “the bottom.” That made sense to me in terms of timing of one’s investments, but since I have no money to invest, even that was not particularly useful to me personally.

I have been wanting to know something about what happened at the G-20, so I looked for something from those writers/analysts who have commented on such things in the past. Jim Willie was my first stop, but there is nothing up on his site about this yet, so I went over to Miles Franklin next and found two blog entries there that seem to relate.

“My conclusion is that we have hit a precious metals BOTTOM and are now reversing, the worst is over in my opinion! I must confess, I called a bottom 2 days after the low in June of 2013, some 16 months ago …which stood as correct until 2 weeks ago… I was wrong. I did not in any way believe the $1,180 level in gold would be broken, it was. That level was broken the day after the last FOMC meeting when 7 days’ worth of global production was sold at 12:30 AM on the COMEX. Clearly this sale was meant to “break the charts” and break the spirits of any remaining PM bulls. It did break the charts and sentiment along with it. I actually saw a bullish/bearish sentiment reading this past week at “0″ bulls, I can’t remember where I saw it but I can tell you in 30 years I have never seen this before in any market.

… we still need to hear from the G-20 and what was decided there along with the Swiss vote at the end of the month and also the “nuisance” factor of ISIS announcing they will create their own currencies …made of gold and silver. We already know the APEC/G-20 meetings have respectively shown little U.S. respect as President Obama was pictured far from the center and (I mean no disrespect) between two women…followed by Mr. Putin being isolated by his lonesome for the G-20 photo. I bring this up because China/Russia obviously knows the game of proper diplomacy, I can see no way a U.S. president would ever be treated like this unless something was afoot and close to being made public (I wrote about this in my “G-20 Massacre” article last week). As for the treatment of Mr. Putin who now says he will leave the summit early, do the G-7 members really believe there is an upside to poking “the bear”?

As for the Swiss vote, this may be quite interesting as the banking powers that be seem to be putting a public full court press for a “no” vote. If this was “no big deal,” there would not be as much or as many efforts to “scare” the voters away from gold. For that matter, the recent price action may be directly connected to this vote and is being used to scare the “yes” vote? I mentioned the announcement of gold and silver currency by ISIS because this will also increase demand. Please do not think the “timing” of their announcement was by any coincidence or by chance, they can see everything we do and understand precious metals are the Achilles Heel of the Western fiat systems.

One last area I’d like to address is sentiment from personal experience. In all my years as a broker and since then writing, I have never seen the fear that has been recently prevalent. I have never received so many e-mails and phone calls from fear the stricken as I have of late. These past two weeks have topped the charts. Even the die hard’s are questioning their logic. Never mind that demand far exceeds supply or that gold and silver cannot be produced for long at these prices, the fear has run rampant and blood is running through the streets (minds) of precious metals investors.

Please understand what is happening and why. President Obama met with the leaders of finance last year and then suddenly gold and silver started to drop. This in my mind was a last ditch effort to show the world “dollar is good, gold is bad”. It has worked … so far, the only problem being “gold cannot be printed” and the West will at some point run out of metal to supply the buyers. I did not take lightly “calling bottom” in June 2013 and I don’t do so now. That level held for 16 months until the most recent operation but it is what it is. The action of the last two Friday’s tells me that something has definitely changed and physical buyers are digging in their heels. In my opinion, we will not trade at the current levels for long. I will be surprised if the action from here is not “V” shaped and another impulse wave kicks it off. Whether or not we have a market closure, holiday and “re set” I don’t know but I do believe it is a likely scenario. Any number of events could possibly be pointed to as (“but if such and such didn’t happen we would have been fine”) a reason. There must be a “reason” for public consumption when in fact the “real reason” is simply an unworkable monetary experiment.”

I am even more curious now about what actually happened at the G-20 if Putin left early, but I suppose it will surface at some point soon. Overall, the article reinforces my feeling that things are accelerating and not going at the leisurely pace that Peter Schiff seems to imply in his interview.

The second November 17th, 2014 article was written by Andrew Hoffman, titled “The Most Prescient Statement Ever Made” (http://blog.milesfranklin.com/the-most-prescient-statement-ever-made) and is mainly about his thoughts regarding the Nov. 30 vote in Switzerland, which certainly supports Schiff’s recommendation to “buy now,” but again that is not useful to me because I have no funds to spend on such purchases:

“… To conclude, no more than 1% of the world realizes the importance of November 30th today. However, don’t be surprised if “the 99%” are well aware shortly thereafter; which is why NOW is the time to protect your assets with precious metals.”

I think most of the readers of this site already know that, but felt to share just in case there are some newcomers who might benefit from hearing it.

Allen. 51 mill on food stamps. plus 149 mill employed leaves 120 million unaccounted for. The Working class is feeding 171 million people either directly or indirectly. Note: 40 % of the working class works for the city, state or government. Grim in not reaching this. We have collapsed.

NC gal I posted here on the 6th that the 5th was THE bottom and also told Sinclair. The miners prices were beyond stupid as all these newsletter writers were hitting their stop loses and telling their subscribers to sell. I told Sinclair it was my opinion they were making a BIG MISTAKE. Since then most are up 30-50%. Some have nearly doubled (10 days)….. Nothing compared to what we will see when these guys figure out they made a mistake. When the world figures out gold is rising for good (without being manipulated) AND realize the only gold to be had is in the ground there will be more lamenting than what we heard on the way to the bottom. It will be a sight to see……. But then the world will not be a pretty sight by then. I used to say, got gold ? Now I believe it’s more appropriate to say ” got God ?”

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Greg is the producer and creator of Greg Hunter’s USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin.

USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.